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investor-state disputes | ISDS

Investor-state dispute settlement (ISDS) refers to a way of handling conflicts under international investment agreements whereby companies from one party are allowed to sue the government of another party. This means they can file a complaint and seek compensation for damages. Many BITs and investment chapters of FTAs allow for this if the investor’s expectation of a profit has been negatively affected by some action that the host government took, such as changing a policy. The dispute is normally handled not in a public court but through a private abritration panel. The usual venues where these proceedings take place are the International Centre for Settlement of Investment Disputes (World Bank), the International Chamber of Commerce, the United Nations Commission on International Trade Law or the International Court of Justice.

ISDS is a hot topic right now because it is being challenged very strongly by concerned citizens in the context of the EU-US TTIP negotiations, the TransPacific Partnership talks and the CETA deal between Canada and the EU.


Institutional innovation in investment treaties: The India-EFTA TEPA model and alternative frameworks for dispute prevention
TEPA addresses fundamental conflicts of emerging market investment structures. The agreement will enable India to escape the ISDS 2015 liability trap, balancing defensive provisions with a pro-investor focus.
Al Habtoor Group to take legal measures against Lebanon over $1.7bn investment losses
Al Habtoor Group said it will move forward with legal action against Lebanon after years of unresolved investment disputes and mounting losses of $1.7 billon linked to banking restrictions and state inaction.
Commission opens in-depth investigation into arbitration award ordering Bulgaria to pay compensation to ACF
The European Commission has opened an in-depth investigation to assess whether an arbitration award, in which Bulgaria is ordered to pay compensation to ACF for changes to a renewable electricity support measure, is in line with EU State aid rules.
Canada’s mining firms are big beneficiaries of the global order its prime minister just criticized
As Mark Carney urges value-based leadership, critics point to trade rules championed by Canada that undermine those ideals.
Coupang’s US investors notify S. Korea of plan to seek international arbitration: ministry
The two investors — Greenoaks and Altimeter — took issue with Seoul’s response to the e-commerce giant’s data breach late last year, claiming that it violated obligations under the Korea-US FTA regarding fair and equitable treatment.
Ukraine wins arbitration in Stockholm on "green tariff"
The Arbitration Tribunal in Stockholm rejected the claim of the foreign investor Modus Energy International B.V. regarding changes to the "green tariff".
Gulf investors file $2bn arbitration against Pakistan over K-Electric
The dispute stems from an October 2016 agreement to sell a majority stake in K-Electric to Shanghai Electric Power Company.
Shell files new arbitration against the Netherlands over Groningen gas field closure
Shell is suing the Netherlands in yet another attempt to evade its responsibility for decades of gas extraction in Groningen.
“The scent of fraud”: the door opens for a new corporate assault on Honduras
While the fate of current ISDS claims remains to be seen, similar corporate investments and interests imposed under the narcodictatorship (the period 2009-2022) are sure to proceed with fewer barriers under the 2026-2030 Honduran government.
Landmark ICSID victory for the People’s Republic of China
The dispute arose from a major mixed‑use redevelopment project in Shandong province. Hela Schwarz alleged that the People’s Republic of China had unlawfully expropriated land use rights
Suleiman Kerimov’s daughter initiated proceedings against Switzerland
Gulnara, the daughter of billionaire Suleiman Kerimov, initiated the first ever investment dispute against Switzerland over sanctions.
Amway loses $3 billion dispute after Mexico seized its 692-acre organic farm
An international tribunal dismissed Amway’s request for $3 billion in damages after the Mexican government in 2022 seized a 692-acre organic farm owned by the multi-level marketing company and gave it to communal landowners.
Water defenders celebrate ruling against US gold company’s claim
A major victory against an exploitative corporate lawsuit in Guatemala.
Denmark’s Rockwool says Russia has seized four of its factories
The company added that it will defend its legal rights under the bilateral investment treaty between the countries.
Fight over Venezuelan oil highlights shadowy international legal system
Trump said the socialist government “stole” from American oil companies. Those firms have been seeking billions in compensation through a controversial arbitration system.
Investor-state arbitration: Swiss investor files ICSID claim against Kenya
Travizory Border Security SA, a Swiss-based border security technology company, filed a treaty-based claim against the Republic of Kenya at the ICSID. The dispute relates to a border-crossing management agreement and is purportedly covered by BIT Switzerland - Kenya 2006 and ICSID Convention - Arbitration Rules.
UAE-based mining firm drags Guinea to World Bank tribunal over $28.9bn bauxite permit dispute
Axis International Ltd has filed a $28.9 billion arbitration claim against Guinea at a World Bank tribunal after the West African country revoked its permit to operate a bauxite mine earlier this year, the United Arab Emirates-based company said.
Wingtech pursues international arbitration against Dutch state over Nexperia seizure
China’s Wingtech is seeking international arbitration in pursuit of up to $8 billion in damages following the Netherlands’ seizure of chipmaker Nexperia.
Statement from the Peaceful Resistance La Puya to the Guatemalan and international community in response to the decision of the international arbitration tribunal (ICSID) in KCA v. Guatemala
This is an opportune moment for Guatemala review the commitments it has made in investment treaties and decide, weighing the costs and benefits, whether or not to remain in his system.
The sound and fury of Venezuela’s ICSID denunciation
If the Venezuela experience is any indication, denouncing the ICSID Convention by itself will not provide much satisfaction.